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US Judge Rejects Facebook Bid to Cancel Antitrust Suit

The judge also rejected Facebook’s argument that the case was fuelled by a bias against the company by FTC chairwoman Lina Khan


Meta
The US Federal Trade Commission has alleged the social media giant, which has renamed itself Meta, holds an illegal monopoly. Photo: Reuters.

 

A US federal judge ruled on Tuesday that regulators’ new anti-trust case against Facebook can go ahead, saying the complaint was more robust and detailed than a version denied last year.

The US Federal Trade Commission (FTC) has alleged the social media giant, which has renamed itself Meta, holds an illegal monopoly by acquiring potential competitors that it now owns like Instagram and WhatsApp.

Judge James Boasberg’s ruling is a blow to Facebook, which faced renewed scrutiny last year after a whistleblower leaked documents showing executives knew the harm their services could cause to teens, democracy and users’ well-being.

The FTC “may well face a tall task down the road in proving its allegations,” but the case will not be dismissed, ruled Boasberg, who last year tossed out the original suit.

His ruling denied a push by Facebook, which did not reply to a request seeking comment, to also dismiss the re-worked complaint.

 

Facebook Market Monopoly

“The commission continues to allege that Facebook has long had a monopoly in the market… and that it has unlawfully maintained that monopoly,” Boasberg wrote.

“The facts alleged this time around to fortify those theories, however, are far more robust and detailed than before,” he added.

The judge also rejected Facebook’s argument that the case should be dismissed because the commission’s decision to amend and refile was fuelled by a bias against the company by FTC chairwoman Lina Khan.

That contention missed the mark, the judge reasoned, because Khan is a prosecutor, not a judge bound to neutrality.

In the amended complaint, the FTC said Facebook’s dominance “is protected by high barriers to entry”.

It added: “Even an entrant with a superior product cannot succeed against the overwhelming network effects enjoyed by an incumbent personal social network.”

 

  • AFP with additional editing by George Russell

 

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George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.

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